The Office of the Comptroller of the Currency (OCC), along with the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (collectively, the agencies), are releasing answers to frequently asked questions (FAQ) regarding the liquidity coverage ratio (LCR) rule. These FAQs are the agencies’ staffs’ interpretations of the rule based on the facts and circumstances presented. These FAQs are not official rules or regulations. The OCC plans to compile additional FAQs related to the LCR rule, as needed, and will post updated FAQs on the OCC’s LCR page.

Note for Community Banks

These FAQs and the LCR rule do not apply to community banks.

Highlights

These FAQs address the following topics:

Treatment of outflows from liquidity facilities to public sector entities in connection with variable rate demand note programs.

Treatment of outflows for trusts.

Determination of maturity for instruments with remote contingency call options.

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